Osino Resources Corp. (
TSXV:OSI)
(
FSE:RSR1) (
OTCQX:OSIIF)
("
Osino” or “
the Company”) is
pleased to provide an update on the ongoing development studies and
project de-risking activities aimed at fast-tracking Osino’s Twin
Hills gold project in Namibia.
Twin Hills is a PEA-stage open pit gold
development project with a mineral resource prepared in accordance
with National Instrument 43-101 of 0.43Moz @ 1.00g/t in the
Indicated category and 1.47Moz at 1.08g/t in the Inferred category
at a cut-off grade of 0.5g/t. The Twin Hills maiden resource was
released on April 12, 2021.
Heye Daun, Osino’s Co-founder and
President & CEO commented: “It is very pleasing to
again be part of an exciting mine development project in Namibia.
We have made significant progress in de-risking the project through
the advancement of various technical studies in 2021. Much progress
has been made with proving up or procuring the key utilities,
namely power and water. Metallurgical variability testing has
advanced to the point where we will soon be able to determine the
optimal processing plant parameters, which will enable us to soon
commence with feasibility studies. The ESIA and public
participation process has also advanced substantially, thereby
supporting a likely permitting decision that could set the project
up for commencement of early works during the end of 2022.”
Permitting Process and Environmental and
Social Impact Assessment (ESIA)
Under Namibia’s Environmental Management Act,
the permitting system requires several steps toward approval of the
mining license which the Company applied for in August 2021.
These steps are regulated by Namibia’s Environmental Management Act
(2007) and the Minerals (Prospecting and Mining) Act (1992).
The most important of these steps are the
completion and approval of the ESIA, including public consultation,
and the compilation of an EMP. Once these are approved, the
Namibian Ministry of Environment, Fisheries and Tourism (MEFT)
issues an Environmental Clearance Certificate (ECC) which is
generally the precursor to the granting of a mining license by the
Ministry of Mines & Energy (MME).
There are a range of additional, secondary
approvals, most of which are usually obtained subsequent to the
granting of a mining license.
There are no prescribed timelines, but mining
licenses are commonly granted after the completion of the ESIA
process.
The following tasks have been completed
to-date:
- Project registration and
Environmental Scoping Study (ESS) report submission
- Baseline specialist study
compilation
- Public participation meetings and
feedback documentation
- EMP submission
- Public review of ESS and EMP
Stakeholder engagement meetings were completed
in September 2021 drawing key figures and representatives from
local communities. The general commentary in the meetings was one
of support for the project based on an expectation that the
proposed mine would provide employment and stimulate the economy on
a local as well as national level.
The next step of the approval process is now
underway to produce an ESIA which will be reviewed by the MME who
make recommendations to the MEFT to issue an ECC. The certificate
is normally issued if no significant risk has been identified, and
approval is normally expected within two to three months of
submission of the ESIA.
The following permits are expected to be applied
for during 2022:
- Land clearing permit
- Accessory works permit
- Bulk fuel storage permit
- Explosives storage and usage permit
- Water extraction permit
- Tailings waste disposal permit
- Heritage permit
The process of applying for these secondary
approvals will commence once the Mining License has been
issued.
Mining and Optimisation
A phase one geotechnical program consisting of
three preliminary holes was completed during 2021 which has guided
the current pit design and slope angles. A follow up program
consisting of four further holes in the Twin Hills Central pit and
three holes in the previously untested Clouds pit will be drilled
in Q1 2022 to provide a level of confidence to the pit design
suitable for future work towards a Bankable Feasibility Study.
Plant Metallurgy Test Work
A fourth phase of metallurgical test work was
started in the final quarter of 2021 designed to do variability
testing suitable for future work towards a Bankable Feasibility
Study. The test work is designed to target the optimal grind size
and costs for a 4.5mtpa processing plant.
The program progressed according to schedule in
Q4 2021 with the following items being completed:
- Comminution
- Thickening
- Filtration
- Gravity separation
- Heap leach test work
The remaining program and test work in progress
are:
- Cyanide leaching targeting optimal
grind size
- Flotation concentrate and grind
size variability test work
The initial results are looking positive and
indicate that the processing parameters used thus far will be
confirmed and will enable optimization of the processing layout.
This metallurgical testwork program is expected to be completed in
January 2022 and the results thereof will be integrated into an
updated processing plant design to be published during Q1 2022.
Tailings Storage Facility
Design work has begun to develop a suitable
tailings disposal strategy according to the Global Industry
Standards for Tailings Management (GISTM) of August 2020.
Geochemical Acid Rock Drainage (ARD) test work has indicated that
the tailings material is not expected to be problematic due to its
low acid generating potential and the high acid neutralizing
potential of the host rock and regolith. As a result, it is likely
that co-disposal and engineered lining will be optimal for the
dry-stacked tailings deposition strategy. Test work and modelling
of the geochemical results are ongoing and the updated strategy
will be reflected in the next form of technical report.
Power Supply
Initial estimates from completed comminution
test work, including crushing and milling tests, indicate a minimum
power requirement of 16MW with a potential for further power up to
20MW. NamPower has performed a network analysis on the local grid
and recommended developing a new dedicated 66kV feeder bay from the
planned NamPower Erongo Substation. The new substation is to be
constructed near the town of Karibib, which is situated
approximately 15km southwest of the proposed mine site. An offer
from NamPower to supply 16MVA via a 66kV overhead line to a
metering substation at the mine site has been accepted by Osino,
with the option to update the requirement before signing the final
agreement based on the confirmed power demand calculations.
Discussions are now underway with NamPower to
finalise the power supply agreement and determine options to fast
track the development of the substation and transmission
infrastructure.
Power supply cost analysis has determined grid
power to be the most cost-effective source at an estimated
NAD2.07/kWh over the life of mine taking both capital and operating
costs into account. A cost-benefit analysis has shown the potential
of implementing a hybrid system including solar power generation to
reduce the cost to NAD1.73/kWh, and to supplement energy demand in
a sustainable manner.
Mine Water Balance and Water Supply
Options
Osino’s mine water supply strategy is designed
to develop a diversified mine water supply which will rely on three
alternative supply options. 1) own supply from groundwater 2)
additional potential supply from Khan River sand aquifers augmented
through the construction of ground weirs and 3) supply from
Namibia’s national water utility, NamWater, through the national
water grid.
The 4.5mtpa processing plant is estimated to
require 5.5Mm3pa and filtration test work results at 63micron grind
size indicate a 23% moisture content in the filter cake, resulting
in a plant make-up water requirement of 1.3Mm3pa.
Figure 1 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/15854e32-1b71-4e22-9ae3-ee73b6733612
Field work during the year has been focused on
advancing each of the strategies:
- Water supply borehole drilling has successfully identified two
different areas of groundwater along a marble syncline. The
southern area has been drilled and pump tested with a proven
sustainable yield of ~1Mm3pa. Drilling is currently targeting the
northern limb and drill rig blow yields have already shown the
potential for a further 0.5Mm3pa.
- The Khan River ground weir study was progressed with a
geophysical study confirming the potential for between 0.5Mm3 and
1Mm3 of water storage, and drilling will now confirm the aquifer
dimensions.
- As further de-risking, an application has been made to Namwater
to secure a backup source of up to 1Mm3pa via a pipeline connection
to Karibib. Under this scheme raw water would be sourced from the
Swakoppoort dam supply.
Planned Project Schedule
Following a successful year of project
development studies, Osino will continue to fast-track the
development of the Twin Hills Gold Project. The company is working
towards publishing a new technical report with an updated mineral
resource estimate in Q2 2022 intended as a pre-feasibility study
which is aiming to reflect improved project economics resulting
from 1) project optimization 2) a larger mineral resource and 3) a
substantial increase in processing plant capacity.
The next intended pre-feasibility study
technical report is then also intended to be followed by a
definitive, or bankable feasibility study and advancement of the
constituent specialist studies to bankable level of detail by the
end of Q3 of 2022. Based on that timeline, and subject to a
positive bankable feasibility study, and project financing and
permitting being in place by the end of Q3 2022, early works could
commence towards the end of 2022. The Company presently only has a
preliminary economic assessment technical report (the
"PEA") entitled, “Amended and Restated Twin Hills
Gold Project, Namibia, Preliminary Economic Assessment, National
Instrument 43-101 Technical Report” dated effective July 14, 2021.
The PEA is preliminary in nature, it includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the preliminary economic assessment will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
Conceptual Development Schedule: Twin
Hills Gold Project/Namibia
Figure 2 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/15854e32-1b71-4e22-9ae3-ee73b6733612
The conceptual development schedule indicated
above outlines a potential development timeline for operations at
Twin Hills.
Qualified Person’s
Statement
David Underwood, BSc. (Hons) is Vice President
Exploration of Osino Resources Corp. and has reviewed and approved
the scientific and technical information in this news release and
is a registered Professional Natural Scientist with the South
African Council for Natural Scientific Professions (Pr. Sci. Nat.
No.400323/11) and a Qualified Person for the purposes of National
Instrument 43-101.
About Osino Resources
Osino is a Canadian gold exploration and
development company focused on the development of our Twin Hills
gold discovery in central Namibia. The Twin Hills Gold Project is
at an advanced stage of exploration with various advanced
development studies underway with the aim of fast-tracking the
project.
Osino has a large ground position of
approximately 6,700km2 located within Namibia’s prospective Damara
sedimentary mineral belt, mostly in proximity to and along strike
of the producing Navachab and Otjikoto Gold Mines. The Company is
actively advancing a range of gold prospects and targets along the
belt by utilizing a portfolio approach geared towards discovery,
targeting gold mineralization that fits the broad orogenic gold
model.
Our core projects are favorably located north
and north-west of Namibia’s capital city Windhoek. By virtue of
their location, the projects benefit significantly from Namibia’s
well-established infrastructure with paved highways, railway, power
and water in close proximity. Namibia is mining-friendly and lauded
as one of the continent’s most politically and socially stable
jurisdictions.
Osino continues to evaluate new ground with a
view to expanding our Namibian portfolio.
Further details are available on the Company's
website at https://osinoresources.com/
CONTACT INFORMATIONOsino
Resources Corp.Julia Becker: Investor Relations ManagerTel: +1
(604) 785 0850jbecker@osinoresources.com
Cautionary Statement Regarding
Forward-Looking Information
This press release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, without
limitation, statements regarding the use of proceeds from the
Company's recently completed financings, and the future plans or
prospects of the Company, including prospects for economic
recoverability of mineral resources. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
statements are necessarily based upon a number of assumptions that,
while considered reasonable by management, are inherently subject
to business, market and economic risks, uncertainties and
contingencies that may cause actual results, performance or
achievements to be materially different from those expressed or
implied by forward-looking statements. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. Other
factors which could materially affect such forward-looking
information are described in the risk factors in the Company's most
recent annual management's discussion and analysis which is
available on SEDAR at www.sedar.com. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
The reader is cautioned that any reference to
mineral resources or geological technical information about Osino’s
mineral properties is based on, excerpted from and expressly
qualified by Osino’s current technical report (the “Technical
Report”) which was prepared in accordance with NI 43-101 entitled,
“Amended and Restated Twin Hills Gold Project, Namibia, Preliminary
Economic Assessment, National Instrument 43-101 Technical Report”
dated effective July 14, 2021 prepared for Osino Resources Corp.
Accordingly, Osino recommends that the reader refer to and read the
Technical Report in its entirety, a copy of which is available on
SEDAR at www.sedar.com under Osino’s issuer profile.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
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